Economic Good

An Economic Good is a good that can satisfy human wants, providing utility, and is scarce in relation to its demand, requiring human effort to obtain.

• Context:
  • It can typically provide Economic Value through utility provision.
  • It can typically require Resource Allocation through scarcity management.
  • It can typically involve Economic Transaction through market exchange mechanism.
  • It can typically satisfy Consumer Need through value delivery.
  • It can typically have Economic Price for market valuation.
  • ...
  • It can often be a Business Product through commercial production.
  • It can often require Production Process through resource transformation.
  • It can often involve Market Distribution through supply chain mechanism.
  • It can often have Ownership Right through property system.
  • It can often include items that satisfy human wants and provide utility to a consumer.
  • It can often be distinguished from free goods which are in abundant supply and require no effort to obtain.
  • It can often include private goods like televisions and consumer goods such as microwave ovens.
  • It can often be a Commodity in the context of marketable raw materials or primary products.
  • It can often encompass both tangible items like apples and intangible forms like information.
  • ...
  • It can range from being a Tangible Economic Good to being an Intangible Economic Good, depending on its physical form.
  • It can range from being a Consumer Economic Good to being a Producer Economic Good, depending on its usage purpose.
  • It can range from being a Private Economic Good to being a Public Economic Good, depending on its excludability characteristic and rivalry characteristic.
  • It can range from being a Necessity Economic Good to being a Luxury Economic Good, depending on its elasticity of demand.
  • It can range from being a Final Economic Good to being an Intermediate Economic Good, depending on its consumption stage.
  • It can range from being a Durable Economic Good to being a Non-Durable Economic Good, depending on its consumption timeframe.
  • It can range from being a Manufactured Economic Good to being a Service Economic Good, depending on its production methodology.
  • ...
  • It can be subject to Economic Valuation for market price determination.
  • It can be affected by Supply Chain Disruption through production limitation.
  • It can be regulated through Trade Policy for cross-border movement.
  • It can be analyzed through Economic Theory for market behavior understanding.
  • It can be categorized in National Account for economic measurement.
  • ...
• Examples:
  • Consumer Economic Goods, such as:
    • Durable Consumer Economic Goods, such as:
      • Household Appliance Economic Goods, such as:
        • Television Economic Good for entertainment consumption.
        • Microwave Oven Economic Good for food preparation.
      • Electronics Economic Goods, such as:
        • Smartphone Economic Good for communication function.
        • Computer Economic Good for information processing.
    • Non-Durable Consumer Economic Goods, such as:
      • Food Economic Goods, such as:
        • Apple Economic Good for nutritional consumption.
        • Bread Economic Good for basic sustenance.
      • Personal Care Economic Goods, such as:
        • Soap Economic Good for hygiene maintenance.
        • Cosmetic Economic Good for appearance enhancement.
  • Producer Economic Goods, such as:
    • Capital Economic Goods, such as:
      • Machinery Economic Good for production automation.
      • Factory Equipment Economic Good for manufacturing capability.
    • Intermediary Economic Goods, such as:
      • Raw Material Economic Goods, such as:
        • Petroleum Economic Good for energy production.
        • Iron Ore Economic Good for steel manufacturing.
      • Component Economic Goods, such as:
        • Textile Economic Good for clothing production.
        • Semiconductor Economic Good for electronics manufacturing.
  • Intangible Economic Goods, such as:
    • Digital Economic Goods, such as:
      • Software Economic Good for computational function.
      • Digital Media Economic Good for information consumption.
    • Intellectual Property Economic Goods, such as:
      • Patent Economic Good for innovation protection.
      • Copyright Economic Good for creative work protection.
  • Service Economic Goods, such as:
    • Professional Service Economic Goods, such as:
      • Medical Service Economic Good for health maintenance.
      • Legal Service Economic Good for legal protection.
    • Consumer Service Economic Goods, such as:
      • Entertainment Service Economic Good for leisure experience.
      • Transportation Service Economic Good for mobility provision.
  • ...
• Counter-Examples:
  • Air, a Free Good that is abundantly available without effort in most contexts.
  • Sunlight, a Natural Resource that is not scarce in ordinary circumstances.
  • Friendship, a Social Relationship that is not subject to economic exchange.
  • Public Park, a Public Space that lacks excludability in most implementations.
  • Emotional State, a Human Condition that exists outside economic measurement.
• See: Goods, Alan V. Deardorff, Primary Sector of The Economy, Television, Economics, Want, Murray Milgate, New Palgrave Dictionary of Economics, Alfred Marshall, Principles of Economics (Marshall), Utility, Consumer, Product (Business), Supply and Demand, Market Economy, Economic Scarcity, Marginal Utility, Public Good, Private Good, Production Possibility Frontier.

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References

2024

• (Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/Goods Retrieved:2024-1-15.
  • In economics, goods are items that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not transferable. A good is an "economic good" if it is useful to people but scarce in relation to its demand so that human effort is required to obtain it. In contrast, free goods, such as air, are naturally in abundant supply and need no conscious effort to obtain them. Private goods are things owned by people, such as televisions, living room furniture, wallets, cellular telephones, almost anything owned or used on a daily basis that is not food-related. A consumer good or "final good" is any item that is ultimately consumed, rather than used in the production of another good. For example, a microwave oven or a bicycle that is sold to a consumer is a final good or consumer good, but the components that are sold to be used in those goods are intermediate goods. For example, textiles or transistors can be used to make some further goods.

    Commercial goods are construed as tangible products that are manufactured and then made available for supply to be used in an industry of commerce. Commercial goods could be tractors, commercial vehicles, mobile structures, airplanes, and even roofing materials. Commercial and personal goods as categories are very broad and cover almost everything a person sees from the time they wake up in their home, on their commute to work to their arrival at the workplace.

    Commodities may be used as a synonym for economic goods but often refer to marketable raw materials and primary products.

    Although common goods are tangible, certain classes of goods, such as information, only take intangible forms. For example, among other goods an apple is a tangible object, while news belongs to an intangible class of goods and can be perceived only by means of an instrument such as printers or television.

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